Who can start a multi-level marketing mlm company?

A company or manufacturer or a trading company who has some exclusive and unique
products or services to market and wants to tap worldwide customers without setting
up expensive shops and showrooms with little efforts and patience can start MLM
Company.

Setting up Multi Level Marketing Company India

What is the law for setting up Multi Level Marketing Company
India?

There is no separate law for setting up a Multi Level Network Marketing MLM Company
in India till now it was proposed in Indian Parliament 2005 but yet not became a
law however there are certain acts of India constitutions which we need to consider
before setting up Multi Level Marketing Company:

It should not be a only head count commission modal which falls in Pyramid Scheme
which is banned in India, covers MRTP Act alias Money Rotation Trade Practice Banning
ACT 1969.

It should not be only money involved investment return format which falls in PCMC
Act alias Prize Chit and Money Circulation banning Act 1978. It should be feasible
Product selling Business Modal.

What is the best practice to setup a Multi Level Marketing
Company?

Firstly we recommend you to setup a Private Limited or Limited Company to setup
a Multi Level Marketing Company in India which involved limited risk for directors
who are setting up a Multi Level Marketing Company Business.

Apply for IDSA (Indian Direct Selling Association) Member Ship. It’s not a government
body but it’s a private body setup by Amway India who is trying to govern the whole
Direct Selling Companies in India with their problem and to stop unethical and illegal
MLM companies and Multi Level Network marketing Business practice to operate and
destroy the MLM Business route.

Apply for Vat/Service Tax/ Tan No and all necessary license and registration required
for manufacture and selling your product.

Appoint a Legal Advisor and a Chartered Account to create rules and regulation forms,
printing materials, other company related legal documents and stationary materials.
Please does not cut copy paste other company’s print materials as it may not be
applied on your product or MLM Business modal? It is also advisable to develop exclusive
website content and information related to company written by legal advisor of the
company to counter legal laws of the Land.